Company gone in to administration. What now ?

PrincesaGuerrera

Hi there
I just found out yesterday (of all days !) that the company that I work for (a very well known courier company) has gone in to administration. So I'm preparing to be told I'll be made redundant. I got an email today from the chief exec but have to go in to work as normal on Monday . What should I expect? Will I be told to pack up there and then or will I have to answer calls from disgruntled customers ? So I know I'll get 3 weeks statutory redundancy, tax free I think? What kind of notice period do I have to get? Think I'm due some holiday pay aswell? Will I be able to sign on straight away ? I'm worried as I have just bought a flat so I know I can't claim housing benefit, so worried I will fall behind with the mortgage . Any advice welcome. I live in Scotland by the way if that makes any difference .

Living_proof

Hi PG. I am sorry to hear of your misfortune and didn't want to read and run, but I have no advice to offer from a redundancy point of view. As hard as it may be, and particularly at this time of year, try and put a positive spin on it and tell yourself that better, more rewarding challenges are just round the corner after Hogmanay. I wish you all the best for 2015.

Barny1979

Avoid this thread then for less complimentary comments out employees like you https://forums.moneysavingexpert.com/discussion/5141108

Takeaway_Addict

Barny1979 wrote: »

Avoid this thread then for less complimentary comments out employees like you https://forums.moneysavingexpert.com/discussion/5141108

You do realise that posting this link is like having a button saying 'do not push'

The OP will of course now check your link.

Barny1979

Location is here Main site > MoneySavingExpert.com Forums> Household & Travel> Consumer Rights > City Link in Administration (Page 1)

anamenottaken

PrincesaGuerrera wrote: »

Hi there
I just found out yesterday (of all days !) that the company that I work for (a very well known courier company) has gone in to administration. So I'm preparing to be told I'll be made redundant. I got an email today from the chief exec but have to go in to work as normal on Monday . What should I expect? Will I be told to pack up there and then or will I have to answer calls from disgruntled customers ? So I know I'll get 3 weeks statutory redundancy (Is this because you have 3 years complete service with City Link?), tax free I think (yes, not subject to income tax)? What kind of notice period do I have to get? ( Depends on your contract - look what your written particulars say but, if you have completed 3 years with them, you are entitled to 3 weeks notice from a statutory entitlement view.) Think I'm due some holiday pay aswell? (Have you taken all the holiday you have accrued in the current holiday year? When does the holiday year end? )Will I be able to sign on straight away ? (AIUI you can register as unemployed if your employment is actually terminated at the point the termination is effective.) I'm worried as I have just bought a flat so I know I can't claim housing benefit, so worried I will fall behind with the mortgage . Any advice welcome. I live in Scotland by the way if that makes any difference .

So you are an employee rather than a contractor?
..

PrincesaGuerrera

I am an employee. I have been there 2 years but am 44 so should get 1.5 weeks for every complete year. My holiday year runs 1 feb-31 Jan and I still had 8 days left to take. Wasn't sure if the same rules applied when a company goes under as it does if your job is just made redundant?

anamenottaken

PrincesaGuerrera wrote: »

I am an employee. I have been there 2 years but am 44 so should get 1.5 weeks for every complete year. My holiday year runs 1 feb-31 Jan and I still had 8 days left to take. Wasn't sure if the same rules applied when a company goes under as it does if your job is just made redundant?

I had asked about the 3 years service as I wondered whether you were older and entitled to the enhanced amount.

Of course, with two complete years' service your statutory notice is two weeks.

If the 8 days left to take are from your full annual entitlement rather than as already accrued, then you would need to proportionately reduce your entitlement - with holiday accrued only up to the end of your statutory notice period rather than contractual notice if that were longer. However that is if the Administrators are unable to make the payment themselves and the national scheme is used. If they are able to make payment, then, again AIUI, your contractual notice period would be applied.

PrincesaGuerrera

what does AIUI mean?

antonic

PrincesaGuerrera wrote: »

what does AIUI mean?

A(s) I U(nderstand) I(t) is what AIUI means.

Another_not_new_user

The company being in administration does not mean you will be made redundant. It means you MAY be. But worry about that when it comes - if this is the case it probably won't take long to find out. However, it is far from unusual for companies of this size to be bought out by another company, and whilst that does not necessarily mean that there will be no possible redundancies, the law does mean that it is somewhat harder because of TUPE obligations. Certainly, the contracts held by the company will be worth something, so much will depend on how these and other assets are disposed of.


Report for work as instructed and do not do anything until you are SURE that you will not be getting paid / are being made redundant - although obviously if you can get another job, then a bird in the hand is worth more than three years statutory redundancy. Being in administration also doesn't mean that a company has no disposable assets or money - there may be enough money in flow to pay wages for some time yet whilst the administrators try to sort things out. At this moment in time you are not unemployed, your contract hasn't been terminated, and you do not wish to give any appearance that you are resigning. So benefits are not on the table yet.


If payment of wages becomes an issue then get advice on the benefits board, if the administrators don't advise you - they should though.